Lean in the Public Sector - Washington State's Lean Journey
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An overview of Washington State's Lean journey and lessons learned presented at the LIPS Conference in Santiago, Chile
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Lean in the Public Sector - Washington State's Lean Journey
- 1. Lean in the Public Sector Presented by: Darrell Damron Director, Government Consulting Services Department of Enterprise Services Washington State Government Santiago, Chile - December 2017 Washington State’s Lean Journey
- 2. Can Lean thinking help government? Absolutely!
- 3. Recent Evidence: Harvard Case Study July 2017 Washington State Government An Operational Excellence in Government Success Story
- 5. 3 Branches of State Government Executive Branch Judicial Branch Legislative Branch
- 6. 64,000 Employees Executive Branch •8 Elected Officials •42 Agencies led by a Governor- Appointed Executive •40 Agencies led by a Board, Council or Commission
- 7. 700 Employees Legislative Branch Senate: 49 Senators House: 98 Representatives
- 8. 500 Employees Judicial Branch •1 Supreme Court •39 Superior Courts •75 District Courts •300 Municipal Courts
- 9. 65,200 Public Servants In Washington State government
- 10. In 2010, Boeing said, “We use Lean to make airplanes, you should use Lean to run government.”
- 11. 2011 Governor Gregoire Orders Lean Thinking to Help Change Government Culture
- 12. Mission: Use Lean to Improve. Report Lessons Learned and Results to Governor in 8 Months! No New Budget No New Staff
- 13. Additional Challenge: New Governor Election Will Happen in 1 Year
- 14. Mission:
- 15. We can do this! I’m in!
- 16. Pre-Election Strategy: Improve Processes, Build Capability
- 17. 72 Employees 36 VSM Projects 26 State Agencies Initial Statewide Effort 8 Months
- 18. Manufacturing Insurance Healthcare Consulting Retail Airlines Information Technology Governmen Lean Expert from a variety of industries volunteered to help us.
- 20. Some Initial Results See more at: http://results.wa.gov/sites/default/files/2012LeanReport.pdf
- 21. 2013 New Governor Elected Jay Inslee
- 22. Post-Election Strategy: Clarify Purpose, Improve Management System
- 23. World-class education Prosperous economy Sustainable energy and a clean environment Healthy and safe communities Efficient, effective and accountable government Governor Jay Inslee Clear Purpose: 5 Goals
- 24. Created Goal Councils Goal Council Operations Budget Policy Customer Created 5 Goal Councils
- 27. More Results
- 29. Gross Business Income Increasing
- 33. Lean Culture Growing 2,069 Improvement Projects 31,000 Employees Trained/Coached Lean Advisors In 54 Agencies 6th Annual Lean Transformation Conference with 2,500 Attendance See more at: http://www.results.wa.gov/sites/default/files/Results%20WA%20July%202016%20report.pdf
- 36. 11 Keys to Success Harvard Case Study July 2017 1. Change your own leadership behavior 2. Create a safe climate for people to surface problems 3. Collaborate across organizational lines 4. Focus on outcomes not just outputs 5. Improve value, don’t just cut costs 6. Develop your middle managers 7. Embrace a patient, long-term view 8. Use simple, familiar terms 9. Be consistent in purpose 10. Learn from others 11. Find your own way
- 37. 3
- 38. Choose your definition of Lean carefully. Lean is a human-centered philosophy of work. Lean creates a culture of curiosity, collaboration, and care so we deliver value to customers. 1
- 39. Set clear direction. Start with Lean culture as strategy. Develop shared principles & values. Choose (or create) the best methods or tools. Adapted from “This is Lean: Resolving the Efficiency Paradox” by Niklas Modig & Par Ahlstrom When you face a business challenge . .. Lean 2 Challenge
- 40. Focus on running the business of government. Lean Government Framework 3
- 41. Conceptual Framework guides our approach to running the business of government
- 42. World ClassWay Behind Relevant for any business situation Framework is Situational
- 43. Organization Process Team Job Scales up and down to any level Framework is Scalable
- 44. Components are interrelated leaders must pay attention to each component as well as the interrelatedness of all components
- 45. • Your Strategy, Values, Mission • What customers want/need • Every team member’s role • Your goals and target measures Get clear about Purpose
- 46. • What work delivers value • What process performance needs to be visible • How you improve the work Get clear about Process
- 47. • The Leader’s role as coach • What each team member needs to do and improve the work Get clear about Capability
- 48. • Leader behaviors expected • Systems needed • How you can see if you’re on track or off Get clear about Management System
- 49. • Your values • What you believe • What assumptions you hold Get clear about Mindset
- 50. “People make mistakes all the time. We learn and grow. If there’s patience and love, and you care for people, you can work them through it, and they can find their greatest heights.” – Coach Pete Carroll
- 51. Darrell Damron Director, Government Consulting Services Cell: 360.581.7922 Email: Darrell.Damron@des.wa.gov LinkedIn: https://www.linkedin.com/in/darrell-damron-leanwagov/ Contact Information
- 52. Recommended Resources • Harvard Case Study on Washington State: https://www.innovations.harvard.edu/opex/research/case-study- performance-management-and-lean-process-improvement-results- washington • Results Washington website: http://results.wa.gov/ • Governor Jay Inslee website: https://www.governor.wa.gov/ • Book: This is Lean: Resolving the Efficiency Paradox http://www.thisislean.com/ • Toyota Kata website: http://www- personal.umich.edu/~mrother/Homepage.html • Lean Enterprise Institute website: https://www.lean.org/
Editor's Notes
- It’s an honor to be here today and share our Lean journey story.
- Many people ask the question, “Can Lean thinking help government?” We would answer, “Absolutely!” The reality is, Lean thinking can help any organization improve the value it delivers to customers. Lean thinking can also help employees have a great experience. So, can Lean thinking help government? We say, absolutely! But you don’t have to just take our word for it.
- Last July, Harvard published a case study about our Lean journey. They called Washington State government an operational excellence in government success story. Today I would like to do three things: I will share some details about our state government’s Lean journey. I will highlight a few of the 11 keys to success that the Harvard case study identified. And I will share with you 3 important lessons we have learned so far.
- I’ll start by sharing some information about our state government. First, I would like to point out that Washington D.C. is on the East coast of the United States, and it is the capitol of our Federal government. But Washington State is on the West coast of the U.S. We often refer to our state as “the other Washington” because when people hear “Washington” they confuse our state with our Federal Capitol, Washington D.C. So I’m from Washington State government, and we serve a population of just over 7 million. I have been in public service in our state government for more than 26 years now. I have been helping our state government on our Lean journey full time since 2008.
- Our state government has 3 branches The Executive branch which enforces the law and operates government services. The Legislative branch which makes laws. And the Judicial branch which interprets laws according to our constitution.
- To give you a sense of the size of our state government: There are 64,000 employees in the executive branch. There are 8 elected officials – the Governor and 7 others. There are 42 state agencies that are led by an executive leader who is appointed by the Governor. And there are 40 state agencies that don’t have a single executive leader; instead they are led by several people appointed to a board, council or commission.
- There are 700 employees in the legislative branch. We have a bicameral system of government with a lower house and an upper senate. The House has 98 representatives who are elected to 2 year terms, and the upper has 49 senators who are elected to 4 year terms.
- There are 500 employees in the judicial branch. We have 1 supreme court, 39 superior courts, 75 district courts, and 300 municipal courts.
- Altogether there are 65,200 public servants in Washington State government. I imagine some of you work in larger organizations, and perhaps some of you work in smaller organizations. When it comes to trying to help an organization move forward in the same direction, this one feels like a big one to me. I hope that gives you a general idea of the size and scope of our state government organization.
- I often get asked, “When did your organization start on the Lean journey?” The reality is, we have been using a variety of tools and techniques to improve government throughout my 26 years of public service. Things like the Balanced Scorecard Total Quality Management and Performance management have been embraced by our government over the years. But we have a long history of working in silos so it was difficult for those tools and techniques to have a systems effect. I’ll pick the story up in 2010, when I joined the Governor’s Office. It was in 2010 that our Governor at the time was in a conversation with people from the Boeing Company who said, “We use Lean to make airplanes, you should use Lean to run government.”
- Of course there was a lot more conversation, but by 2011, our Governor, Governor Christine Gregoire, issued an order calling for a Lean transformation journey for all of state government. She wanted to change the very culture of state government in a way that would deliver better value to those we serve.
- Her orders were very specific, she said: Learn about Lean Use Lean thinking to make improvements And report lessons learned in 8 months. Oh, and by the way, you get no new budget and no new staff.
- And there was an additional challenge, the governor that ordered the transformation of our entire government’s culture was not running for re-election, and the election was just a little more than a year away. So let’s see, We have to show results and lessons learned in 8 months, We don’t get any new money We don’t get any new staff And we’re going to get a new Governor next year. I know what you’re thinking.
- You’re thinking this is mission impossible, right? I’m sure there were a lot of people who thought that. This might tell you a lot about how crazy I am, but I said . . .
- We can do this! I’m in.
- So with the help of two of the Boeing Company’s internal consultants, we came up with a strategy to improve some of government processes and build Lean thinking capability in the workforce.
- We asked the directors of 26 state agencies to identify a business problem that needed to be solved and two employees we would train to understand basic Lean principles and tools. We ended up training 72 employees and paired them up to do 36 value stream mapping projects in 26 different state agencies.
- In order to help these newly trained employees as they led their first value stream mapping projects, we asked for help from Lean experts in a variety of industries. We found an abundance of Lean experts who were willing to provide coaching to our newly trained employees. These experts didn’t lead the efforts, but they were there to provide support and coaching as our employees led the efforts.
- Initially we matched up Lean experts to help those first 36 projects. But we continued to ask for help, and they continued to say yes. Between 2011 and 2013, we partnered with more than 250 Lean experts from over 100 organizations who : Gave us advice, Delivered training, Provided coaching to our improvement projects Or let us go on tours of their organization to see how they used Lean.
- Our initial results were great. Our approach to improvement projects asked the employees who did the work to improve the work. On the screen are just a few of the results, but there is a link to a report we did in 2012, and that report lists a lot more detail about what we did and what results we achieved if you’re interested. The big win we experienced was generating excitement in the workers because we asked them to make improvements. They were very excited to be given the opportunity and some new skills to improve their work.
- Then in 2013, the people of our state elected a new Governor. Jay Inslee won the election, and he also believed in the power of Lean thinking.
- So after the election, we focused on clarifying our purpose and improving our management system at the executive level.
- We created just 5 goals for our government to focus on. A world class education A Prosperous economy Sustainable energy and a clean environment Healthy and safe communities and An efficient, effective and accountable government
- One of the improvements we made to the management system was to create what we call a “Goal Council” for each of the 5 goal areas. Each goal council is made up of the agency director, budget staff, policy staff and a representative customer. This brings all the key players together to talk about our progress toward the goals.
- Each of the goal councils meets with the governor regularly. They review data, talk about improvement efforts, listen to customers and make plans for removing barriers.
- We call this our Results Washington management system. For our state, it has been a great alignment of The governor’s office The goal councils Agency staff Partners outside of government And customers who receive services from our government.
- Since Governor Inslee was elected in 2013, we continue to see progress toward the 5 goal areas.
- Our graduation rates for school children are increasing.
- Our gross business income is increasing.
- The quality of our air is increasing.
- The number of people getting injured at work and is decreasing.
- And satisfaction with our efforts as a government is increasing.
- Another benefit we are experiencing is a growing culture of Lean thinking. Here are just a few indicators: We have completed well over 2,000 improvement projects now 10s of thousands of employees have received training on Lean principles and tools We have Lean Advisors in 54 state agencies who help guide strategic improvement efforts This year we held our 6th Annual Washington State Government Lean Transformation Conference where each year more than 2,500 employees voluntarily attend to learn from private sector Lean experts as well as other government professionals who are applying Lean thinking to government
- Last year, Governor Inslee was re-elected to a second term in office. I hope my quick overview gave you a sense of how we have approached our Lean journey up to this point.
- What I would like to do now is just highlight a few of the keys to success that are listed in the Harvard case study we were featured in.
- The Harvard case study listed 11 keys to our success so far. I would just like to highlight these 4 for you. The first key to success I would like to highlight is change your own leadership behavior. It would be a mistake to think you can simply assign someone to go do this Lean thing in your organization. If you want to make lasing improvement, you’ll be challenged to change your own leadership behavior. One example is learning to coach more and give order less. The second key to success I would like to highlight is improve value, don’t just cut costs. If you only approach Lean as a cost cutting exercise, I can guarantee it will not last long. Especially with your employees. The third key to success I would like to highlight is learn from others. While you can’t simply copy exactly what other organizations, you can learn a lot from other organizations and other people in your own organization. The forth key to success I would like to highlight is find your own way. This is both a personal and an organizational journey. As you pursue solving the problems your organization faces, you have an opportunity to invent new ways of approaching old problems. You can of course read all about the details of our journey in the Harvard case study.
- Finally I would like to share 3 important lessons we have learned.
- First, you need to choose your definition of Lean carefully. On one end of the spectrum, there are many who define Lean as merely a set of tools for eliminating waste or cutting costs. We’re on the other end of the spectrum. We define Lean as a human-centered philosophy of work that creates a culture of curiosity, collaboration and care so we deliver value to our customers. We believe our broader definition of Lean invites our organization to create a way of working that will deliver better value to more customers for generations to come – rather than be a “flavor of the month” type of initiative.
- Another lesson we have learned is the importance of leaders setting the direction to use Lean culture as an operations strategy. When you start with Lean culture as a strategic choice, then you develop shared principles and values about how you’re going work together. Then when you face the challenges of doing your business, you select the best method or tool to meet that challenge. Or you may even create a new method or tools to meet that challenge. A common mistake many organizations make is to start by forcing the organization to copy the Lean tools that Toyota used to solve their problems. When you start by copying Toyota’s tools and forcing them on your business problems, you often end up using the wrong tool.
- The third lesson we have learned is the importance of focusing on running all the business of government. Notice I did not say we should run government like a business. Instead I’m saying we need to run the business of government.
- The Lean Government Framework is a guide that can help you focus on 5 components that are critical to running the business of government.
- This framework has 2 important characteristics. First it is situational. By that I mean the framework is relevant for any business situation you may face. Whether you’re way behind and need to catch up or you’re world class and want to get even better, the framework can be applied to your situation.
- The second characteristic the framework has is it’s scalable. The framework can be applied at the job level, the team level, the process level, value stream level, whole organization level; it can even be applied to systems of systems.
- While each component of the framework is important individually, it is also critical to pay attention to the interrelatedness of all the components.
- The purpose component invites you to get clear about Your Strategy, Values, Mission What customers want/need Every team member’s role Your goals and target measures
- The process component invites you to get clear about What work delivers value What process performance needs to be visible How you improve the work
- The capability component invites you to get clear about The Leader’s role as coach What each team member needs to do and improve the work
- The management system component invites you to get clear about Leader behaviors expected Systems needed to support all the work How you can see if you’re on track or off
- The mindset component invites you to get clear about Your values What you believe What assumptions you hold
- I would like to leave you with a quote from Seattle Seahawks coach Pete Carroll who has a reputation for developing the players on his team to solve problems on and off the field. This quote from Coach Carroll really speaks to the heart of what it means to be a leader who develops people. He said, “People make mistakes all the time. We learn and grow. If there’s patience and love, and you care for people, you can work them through it, and they can find their greatest heights.”